Gulf Resources Provides Updates On Its Business Operation
March 18 2021 - 8:30AM
Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources" or the
"Company"), a leading manufacturer of bromine, crude salt and
specialty chemical products in China today provides updates on its
business operation.
On November 30, 2020, Gulf Resources announced that the
government of Shouguang City, ordered that all bromine facilities
be temporarily closed from December 25, 2020 until February 19,
2021. The Company believed the seasonal closure ordered by the
government was part of governmental action plan to curb air
pollution in the winter and improve the comprehensive development
efficiency of brine resources. On February 19, 2021, as planned,
the company reopened its four operating bromine and crude salt
factories.
After the reopening, it took three to four days for the Company
to test the equipment and begin production. Since then, production
has ramped up. It is currently at a level similar to its level in
middle to late December 2020.
At the time of the temporary closure, bromine was sold at
RMB33,332 per tonnes. The current bromine selling price is
approximately RMB34,500 per tonnes, up approximately 3.5% since
December 2020.
While crude salt production during winter months can be impacted
by seasonally cold weather, the current bromine selling prices are
almost double their low of RMB16,800 in October 2014 and relatively
close to their all-time high of RMB34,970 in May 2019.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through three wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"),
and Daying County Haoyuan Chemical Company Limited (“DCHC”). The
Company believes that it is one of the largest producers of bromine
in China. Elemental Bromine is used to manufacture a wide variety
of compounds utilized in industry and agriculture. Through SYCI,
the Company manufactures chemical products utilized in a variety of
applications, including oil and gas field explorations and
papermaking chemical agents, and materials for human and animal
antibiotics. DCHC was established to further explore and develop
natural gas and brine resources (including bromine and crude salt)
in China. For more information, visit www.gulfresourcesinc.com.
Forward-Looking Statements
Certain statements in this news release contain forward-looking
information about Gulf Resources and its subsidiaries business and
products within the meaning of Rule 175 under the Securities Act of
1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and
are subject to the safe harbor created by those rules. The actual
results may differ materially depending on a number of risk factors
including, but not limited to, the general economic and business
conditions in the PRC, future product development and production
capabilities, shipments to end customers, market acceptance of new
and existing products, additional competition from existing and new
competitors for bromine and other oilfield and power production
chemicals, changes in technology, the ability to make future
bromine asset purchases, and various other factors beyond its
control. All forward-looking statements are expressly qualified in
their entirety by this Cautionary Statement and the risks factors
detailed in the company's reports filed with the Securities and
Exchange Commission. Gulf Resources undertakes no duty to revise or
update any forward-looking statements to reflect events or
circumstances after the date of this release.
CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com Director of Investor
Relations Helen Xu (Haiyan Xu) beishengrong@vip.163.com
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